A report released by the International Energy Agency on Oct. 9 notes that global residential pellet appliance sales have already begun to recover from last year’s low levels as pellets become more affordable again.&nbsp;The IEA’s annual Renewables market report briefly addresses the global market for wood pellet heating and appliances, noting that the use of wood pellets for heating has been growing rapidly over the past decade, particularly in the European residential sector.&nbsp;The report notes that the European Union is the world’s foremost pellet market, accounting for 44% of wood pellet production and approximately 50% of wood pellet consumption last year. Much of that volume is used for residential heating.&nbsp;“After two decades of continuous market expansion for pellets and two years of record sales for pellet-based appliances, global pellet production stalled in 2023 and the market for pellet appliances is facing headwinds,” the IEA said in its report.&nbsp;The agency explains that the EU’s 2022 embargo on forestry products from Belarus and Russia resulted in a consumer rush to stock up on pellets during the energy crisis, which led to supply shortages in the EU and a sharp increase in pellet prices. Those factors affected consumer confidence and choices through 2023, the IEA said. The agency also cites policy changes in France and Italy as impacting consumer behavior. In addition, reduced construction activity and a particularly mild winter contributed to fewer heating appliance sales and higher interest rates and other economic factors caused households to postpone large investments.&nbsp;As a result of these factors, EU pellet appliance sales fell by more than half last year. Sales of wood log stoves, however, increased. The IEA notes that Poland was a notable exception, experiencing steady sales of pellet stoves and boilers due to available incentives aimed at replacing coal-fired boilers. The IEA also notes that sales of large-scale appliances were less affected by pellet price volatility and remained strong throughout the year.&nbsp;According to the IEA, the downward market trend in residential heating appliances was temporary. Increased pellet production and other factors led to declining pellet prices during the first half of last year, and residential appliance markets have already mostly recovered. Pellet prices, however, still remain higher than pre-2022 levels, which the IEA primarily attributes to production costs that are impacted by higher electricity prices.&nbsp;A full copy of the report is available on the IEA <a href="https://www.iea.org/reports/renewables-2024">website</a>.&nbsp;

2024-10-10 - IEA: Rebound in global pellet appliance sales already underway (Biomass Magazine)

small_IEA2024RenewablesPellets.jpg

thumbnail_IEA2024RenewablesPellets.jpg

IEA2024RenewablesPellets.jpg

A report released by the International Energy Agency on Oct. 9 notes that global residential pellet appliance sales have already begun to recover from last year’s low levels as pellets become more affordable again. 

IEA: Rebound in global pellet appliance sales already underway

Related Stories

Alliance for Green Heat facilitates public-private partnership to secure firewood for communities

Drax announces restructuring plan

USDA: US wood pellet exports top 891,093 metric tons in November

Drax launches new Biomass Tracker to boost transparency across biomass supply chain

Drax signs strategic wear parts supply agreement for North America with ANDRITZ

Upcoming Events

2026 International Biomass Conference & Expo

IEA: Rebound in global pellet appliance sales already underway.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}